24 February 2020

BDA advises Donaldson on sale of its Exhaust & Emissions business to Nelson Global Products

Divested the Exhaust & Emissions Business to Nelson Global Products


BDA Partners is pleased to announce that its client, Donaldson Company, Inc. (NYSE: DCI), a leading worldwide provider of innovative filtration products and solutions, today announced it has received a binding offer from Nelson Global Products, Inc. (“Nelson”) to purchase its Exhaust and Emissions (“E&E”) business. BDA Partners acted as exclusive financial advisor to Donaldson.

Charles Maynard, Senior Managing Director, BDA, commented: “This transaction reflects BDA’s ability to manage complex corporate carveouts across multiple jurisdictions. We are pleased that Nelson is the ultimate buyer and believe the transaction will create synergies globally.”

Jonathan Aiken, Managing Director, BDA, commented: “E&E has impressive aftertreatment technology and products aligned with stricter emissions regulations in Europe, the US and globally. E&E’s advanced engineering capabilities, longstanding OEM partnerships and global footprint will be a good growth catalyst for Nelson.”

About the Binding Offer

The following information was provided in a press release issued by Donaldson Company, Inc. (NYSE: DCI) today, February, 24, 2020. Please visit Donaldson’s Investor Relations website at IR.Donaldson.com for more information.

Due to the receipt of the offer from Nelson, Donaldson will engage in a consultation with its employee representative committees in Europe. Following completion of the consultation process, Donaldson will have the right to enter into a purchase agreement with Nelson, pursuant to a put option agreement. Upon entering the purchase agreement, the contemplated acquisition by Nelson would be subject to customary closing conditions and regulatory approvals.

Donaldson’s E&E business contributed approximately $120 million of revenue to the Engine Products segment in fiscal 2019. The transaction would include Donaldson’s dedicated E&E sales and engineering functions, production facilities and lab capabilities. Pending the consultation process noted above, the parties’ entry into the purchase agreement and satisfaction of closing conditions and necessary approvals, the transaction is expected to close in Donaldson’s third quarter of fiscal 2020.

About Donaldson Company

Founded in 1915, Donaldson Company is a global leader in the filtration industry with sales, manufacturing and distribution locations around the world. Donaldson’s innovative technologies are designed to solve complex filtration challenges and enhance customers’ equipment performance. www.Donaldson.com

About Nelson Global Products

With 80 years of rich engineering and manufacturing history, Nelson Global Products designs, manufactures, and markets a broad range of high-performance exhaust, tubular, and emissions-related products for OEM and aftermarket use for the global on-highway, off-highway, and power sports markets.

Nelson Global Products, a Wind Point Partners company, has over 2,800 employees and 16 existing locations around the world. Nelson has manufacturing in the United States (6), India (4), Mexico (2), Brazil (2), China (1), and Australia (1). Two more manufacturing facilities are scheduled to open in India in 2020. www.nelsongp.com

About Wind Point Partners

Wind Point Partners is a Chicago-based private equity investment firm with approximately $3 billion in assets under management. Wind Point focuses on partnering with top caliber management teams to acquire well-positioned middle market businesses where it can establish a clear path to value creation. The firm targets investments in the consumer products, industrial products and business services sectors. Wind Point is currently investing out of Wind Point Partners IX, a fund that was initiated in 2019. www.wppartners.com

About BDA

BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 20 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul, and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.

BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese Government-owned bank with US$150bn of assets. bdapartners.com